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Buy 4 Cybersecurity Bigwigs for a Strong and Secure Portfolio in 2026
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Key Takeaways
FFIV is seeing strong software growth from rising demand for multi-cloud application security.
CSCO expects AI infrastructure orders to hit $9B in fiscal 2026 amid AI data center expansion.
PLTR is expanding AI adoption across defense and commercial sectors through its AIP platform.
The cybersecurity space focuses on companies that offer integrated protection against evolving security threats while simplifying IT security infrastructure. Companies in this space provide solutions to safeguard applications, networks and cloud computing environments.
The widespread adoption of artificial intelligence (AI), IoT devices, and increased digitization across both public and private sectors has heightened vulnerabilities and expanded attack surfaces, necessitating the development of advanced security solutions. Cybersecurity providers ensure robust defenses against cyberattacks.
The chart below shows the price performance of our four picks year to date.
Image Source: Zacks Investment Research
F5 Inc.
F5 is gaining traction from strong software growth, backed by a solid uptick in public cloud and security offerings. FFIV is benefiting from the growing demand for application security across multi-cloud environments. Acceleration in BIG-IP and NGINX subscription software deals is an upside.
FFIV is incorporating more automation and orchestration in its platforms to enable quicker application provisioning. F5 is uniquely positioned in the application networking market due to its strong presence in Layer 4-7 content switching, critical for managing the increasing capacity and security demands of modern applications.
F5 has an expected revenue and earnings growth rate of 7.7% and 4.1%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 3.4% over the last 30 days.
Cisco Systems Inc.
Cisco Systems has been benefiting from strong product orders from hyperscalers, enterprises, service providers, the public sector and cloud customers. In the last reported quarter, CSCO generated record-high revenues primarily due to its networking portfolio, powered by Silicon One, AI-native security solutions and operating systems.
CSCO expects total AI infrastructure orders to reach $9 billion in fiscal 2026, an increase of 4.5X from fiscal 2025. Overall product orders grew by a sizable 35% year over year in the third quarter. Of this, data center switching orders grew 40% from the year-ago period, supported by massive AI-powered data center buildout.
Cisco has decided to retrench 4,000 manpower as part of a sweeping restructuring effort. Management said that this restructuring has been guided to give more emphasis to areas like AI networking infrastructure, network security, silicon and optics.
Cisco Systems has an expected revenue and earnings growth rate of 10.8% and 10.2%, respectively, for the current year (ending July 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% over the last 30 days.
Datadog Inc.
Datadog is benefiting from enterprise adoption of its unified observability platform, driven by cloud migration and digital transformation across global organizations. AI-powered anomaly detection and root cause analysis strengthen competitive positioning against legacy monitoring vendors. DDOG’s Platform consolidation supports multi-product deployments, creating network effects and customer stickiness.
The platform's comprehensive observability and security suite addresses critical enterprise needs for cloud infrastructure monitoring, application performance management, security analytics, LLM observability, data observability and cloud cost management in increasingly hybrid, multi-cloud and AI-driven environments. Enterprise customers typically deploy multiple Datadog products, creating significant expansion opportunities through cross-selling and upselling.
DDOG’s leadership in AI-powered observability and security establishes significant competitive advantages as enterprises increasingly prioritize intelligent monitoring solutions. These AI capabilities become increasingly valuable as cloud environments grow more complex and distributed across multiple infrastructure layers.
Datadog has an expected revenue and earnings growth rate of 25.7% and 16.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 12.7% over the last 30 days.
Palantir Technologies Inc.
Palantir Technologies’ AI strategy is comprehensive, combining its proprietary Foundry and Gotham platforms with a solid plan to promote AI adoption across both government and commercial sectors. PLTR’s AI Platform (AIP) is the backbone of these capabilities, enabling organizations to process large datasets and derive real-time insights. This is especially valuable in sectors requiring extensive data integration, such as defense, healthcare, finance and intelligence, where operational efficiency and decision-making speed are critical.
In the government sector, Palantir is aligning its AI strategy with U.S. defense priorities. Its work in high-profile initiatives, such as the Department of Defense’s Open DAGIR project, highlights its ability to modernize military operations through AI-driven solutions where data interoperability and real-time decision-making capabilities are imperative. These capabilities solidify PLTR’s position as a key player in the defense sector.
In the commercial space, Palantir’s AIP boot camps — providing hands-on experience to over 1,000 companies — have proven instrumental in customer acquisition. Boot camps showcase the platform’s capabilities and demonstrate its adaptability across logistics, manufacturing, and supply-chain management. PLTR’s core customer base comprises businesses seeking tailored AI/ML services, particularly large government and corporate clients willing to invest heavily in its systems.
Palantir has an expected revenue and earnings growth rate of 71.8% and 98.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 11.2% over the last 30 days.
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Buy 4 Cybersecurity Bigwigs for a Strong and Secure Portfolio in 2026
Key Takeaways
The cybersecurity space focuses on companies that offer integrated protection against evolving security threats while simplifying IT security infrastructure. Companies in this space provide solutions to safeguard applications, networks and cloud computing environments.
The widespread adoption of artificial intelligence (AI), IoT devices, and increased digitization across both public and private sectors has heightened vulnerabilities and expanded attack surfaces, necessitating the development of advanced security solutions. Cybersecurity providers ensure robust defenses against cyberattacks.
We recommend four cybersecurity stocks for 2026 to strengthen your portfolio. These are: F5 Inc. (FFIV - Free Report) , Cisco Systems Inc. (CSCO - Free Report) , Datadog Inc. (DDOG - Free Report) and Palantir Technologies Inc. (PLTR - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our four picks year to date.
Image Source: Zacks Investment Research
F5 Inc.
F5 is gaining traction from strong software growth, backed by a solid uptick in public cloud and security offerings. FFIV is benefiting from the growing demand for application security across multi-cloud environments. Acceleration in BIG-IP and NGINX subscription software deals is an upside.
FFIV is incorporating more automation and orchestration in its platforms to enable quicker application provisioning. F5 is uniquely positioned in the application networking market due to its strong presence in Layer 4-7 content switching, critical for managing the increasing capacity and security demands of modern applications.
F5 has an expected revenue and earnings growth rate of 7.7% and 4.1%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 3.4% over the last 30 days.
Cisco Systems Inc.
Cisco Systems has been benefiting from strong product orders from hyperscalers, enterprises, service providers, the public sector and cloud customers. In the last reported quarter, CSCO generated record-high revenues primarily due to its networking portfolio, powered by Silicon One, AI-native security solutions and operating systems.
CSCO expects total AI infrastructure orders to reach $9 billion in fiscal 2026, an increase of 4.5X from fiscal 2025. Overall product orders grew by a sizable 35% year over year in the third quarter. Of this, data center switching orders grew 40% from the year-ago period, supported by massive AI-powered data center buildout.
Cisco has decided to retrench 4,000 manpower as part of a sweeping restructuring effort. Management said that this restructuring has been guided to give more emphasis to areas like AI networking infrastructure, network security, silicon and optics.
Cisco Systems has an expected revenue and earnings growth rate of 10.8% and 10.2%, respectively, for the current year (ending July 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% over the last 30 days.
Datadog Inc.
Datadog is benefiting from enterprise adoption of its unified observability platform, driven by cloud migration and digital transformation across global organizations. AI-powered anomaly detection and root cause analysis strengthen competitive positioning against legacy monitoring vendors. DDOG’s Platform consolidation supports multi-product deployments, creating network effects and customer stickiness.
The platform's comprehensive observability and security suite addresses critical enterprise needs for cloud infrastructure monitoring, application performance management, security analytics, LLM observability, data observability and cloud cost management in increasingly hybrid, multi-cloud and AI-driven environments. Enterprise customers typically deploy multiple Datadog products, creating significant expansion opportunities through cross-selling and upselling.
DDOG’s leadership in AI-powered observability and security establishes significant competitive advantages as enterprises increasingly prioritize intelligent monitoring solutions. These AI capabilities become increasingly valuable as cloud environments grow more complex and distributed across multiple infrastructure layers.
Datadog has an expected revenue and earnings growth rate of 25.7% and 16.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 12.7% over the last 30 days.
Palantir Technologies Inc.
Palantir Technologies’ AI strategy is comprehensive, combining its proprietary Foundry and Gotham platforms with a solid plan to promote AI adoption across both government and commercial sectors. PLTR’s AI Platform (AIP) is the backbone of these capabilities, enabling organizations to process large datasets and derive real-time insights. This is especially valuable in sectors requiring extensive data integration, such as defense, healthcare, finance and intelligence, where operational efficiency and decision-making speed are critical.
In the government sector, Palantir is aligning its AI strategy with U.S. defense priorities. Its work in high-profile initiatives, such as the Department of Defense’s Open DAGIR project, highlights its ability to modernize military operations through AI-driven solutions where data interoperability and real-time decision-making capabilities are imperative. These capabilities solidify PLTR’s position as a key player in the defense sector.
In the commercial space, Palantir’s AIP boot camps — providing hands-on experience to over 1,000 companies — have proven instrumental in customer acquisition. Boot camps showcase the platform’s capabilities and demonstrate its adaptability across logistics, manufacturing, and supply-chain management. PLTR’s core customer base comprises businesses seeking tailored AI/ML services, particularly large government and corporate clients willing to invest heavily in its systems.
Palantir has an expected revenue and earnings growth rate of 71.8% and 98.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 11.2% over the last 30 days.